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3-82
138.
Recording transactions journal entry grid
A list of accounts for Harding Company is given below, followed by a series of
transactions. Indicate the accounts that would be debited and credited in recording each
transaction by placing the appropriate number (or numbers) in the space provided.
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139.
Listed below are accounts of Global Company, each identified by a number. Following this
list of accounts is a series of transactions. You are to indicate for each transaction the
accounts that should be debited and credited by inserting the proper account numbers in
the space provided.
140.
Effects of a series of transactions on balance sheet items
Fieldstone, Inc. had the following transactions during the month of March, the first month
of operations for the business:
* The corporation issued 12,000 shares of capital stock to Sandy Fieldstone in exchange
for $120,000 cash.
* Purchased $73,000 of equipment; made an $18,000 down payment and signed a note
payable for the balance.
* Made payment of $9,000 on the amount owed for equipment.
(A.) Compute the balance in the Cash account at the end of March.
(B.) What are the total assets of Fieldstone, Inc. at the end of March?
(C.) Compute the balance in the Notes Payable account at the end of March.
(D.) What is the total amount of owners' equity at the end of March?
141.
Effects of a series of transactions on balance sheet items
Clark Plumbing had the following transactions during the month of June, the first month of
operations for the business:
* The corporation issued 12,000 shares of capital stock to Bill Clark in exchange for his
investment of $72,000 cash.
* Purchased $36,000 of equipment; made an $8,000 down payment and signed a note
payable for the balance.
* Made payment of $4,000 on the amount owed for equipment.
(A.) Compute the balance in the Cash account at the end of June.
(B.) What are the total assets of Clark Plumbing at the end of June?
(C.) Compute the balance in the Notes Payable account at the end of June.
(D.) What is the total amount of owners' equity at the end of June?
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142.
Rules of debit and credit as applied to balance sheet accounts
Items in the balance sheet are classified into three categories: assets, liabilities, and
owners' equity.
(A.) Identify by name
two ledger accounts
in each of the first two categories above (assets
and liabilities) and
one
owners' equity account. State whether each account would
normally have a debit or credit balance.
(B.) Describe briefly the rules of debits and credits as applied to the three categories of
balance sheet accounts: asset accounts, liability accounts, and owners' equity accounts.
143.
Double-entry accounting
The accounting system of most businesses, whether manual or computer-based, is some
form of a
double-entry
system of accounting.
(A.) What is meant by the term "double-entry accounting"?
(B.) Explain how the double-entry system is applied in accounting for the following
transaction: Majestic Company purchases a piece of equipment costing $6,000, paying
$3,000 cash with the balance of the purchase price to be paid within 60 days.
144.
Recording transactions in general journal
Enter the following transactions in the two-column journal of Baumann Bathrooms.
Include a brief explanation of the transaction as part of each journal entry.
145.
Recording transactions in general journal
Enter the following transactions in the two-column journal of Festive Parties, Inc. Include
a brief explanation of the transaction as part of each journal entry.
